(ICON)
Prudential
Jennison
Growth &
Income
Fund
SEMI
ANNUAL
REPORT
March 31, 1997
(LOGO)
<PAGE>
Prudential Jennison Growth & Income Fund
A Series of the Prudential Jennison Series Fund, Inc.
Performance At A Glance.
Led by large companies, stocks continued their record bull
market late in 1996
and into early 1997. In late March stocks began to falter as
the prospect of
rising interest rates and slowing corporate earnings growth
made many investors
wonder how long the market could continue to reach record
highs. During the
period, the Prudential Jennison Growth & Income Fund
produced returns which
were competitive with the average growth and income fund, as
measured by
Lipper Analytical Services.
Cumulative Total Returns1 As of 3/31/97
<TABLE>
<CAPTION>
Since
Since
Inception2
Inception2
(Without Sales Charge)
(With Sales Charge)
<S> <C>
<C>
Class A 4.5%
- -0.8%
Class B 4.2
- -0.8
Class C 4.2
3.2
Class Z 4.8
4.8
Lipper Growth & Income Avg3 4.0
N/A
</TABLE>
Past performance is not indicative of future results.
Principal and investment
return will fluctuate so that an investorOs shares, when
redeemed, may be worth
more or less than their original cost.
1Source: Prudential Investments Fund Management and Lipper
Analytical Services.
The Fund charges a maximum front-end sales load of 5% for
Class A shares. Class
B shares are subject to a declining contingent deferred
sales charge (CDSC) of
5%, 4%, 3%, 2%, 1% and 1% for six years. Class C shares
have a 1% CDSC for one
year. Class B shares will automatically convert to Class A
shares on a
quarterly basis after approximately seven years. Class Z
shares are not
subject to a sales charge or a distribution fee. No average
annual total
returns are shown because the Fund has been in operation for
less than one
year.
2Inception date: 11/7/96 for Class A, Class B, Class C and
Class Z shares.
3These are the average returns of 616 funds in the growth
and income category
since inception of the Fund, as determined by Lipper
Analytical Services.
How Investments Compared.
(As of 3/31/97)
(GRAPH)
Source: Lipper Analytical Services. Financial markets
change, so a mutual
fund's past performance should never be used to predict
future results. The
risks to each of the investments listed above are different
- -- we provide
12-month total returns for several Lipper mutual fund
categories to show you
that reaching for higher yields means tolerating more risk.
The greater the
risk, the larger the potential reward or loss. In addition,
we've included
historical 20-year average annual returns. These returns
assume the
reinvestment of dividends.
U.S. Growth Funds will fluctuate a great deal. Investors
have received higher
historical total returns from stocks than from most other
investments. Smaller
capitalization stocks offer greater potential for long-term
growth but may be
more volatile than larger capitalization stocks.
General Bond Funds provide more income than stock funds,
which can help smooth
out their total returns year by year. But their prices still
fluctuate
(sometimes significantly) and their returns have been
historically lower than
those of stock funds.
General Municipal Debt Funds invest in bonds issued by state
governments, state
agencies and/or municipalities. This investment provides
income that is usually
exempt from federal and state income taxes.
Taxable Money Market Funds attempt to preserve a constant
share value; they
don't fluctuate much in price but, historically, their
returns have been
generally among the lowest of the major investment
categories.
<PAGE>
Bradley Goldberg, Fund Manager (PICTURE)
Portfolio
Manager's Report
The Prudential Jennison Growth & Income Fund invests
primarily in common stocks
of established companies with growth prospects believed to
be largely
unrecognized by the market. It is hoped that by combining a
focus on earnings
growth with a valuation discipline, the Fund can capture
strong total
investment returns. There can be no assurance that the Fund
will achieve its
investment objective.
Strategy Session.
- ------------------------------------------------------------
- -------------------
In selecting securities for your new Fund, we look for a
good earnings growth
outlook over the next two years in stocks that are also
selling at low
valuations when compared to the market. As a result, the
companies in the
portfolio are enjoying good earnings growth while their
stocks are selling at
prices relatively below those of the stocks of the market in
general.
The opening of your Fund last November coincided with the
U.S. stock market
setting all-time highs. At the same time, we also began to
see signs that
corporate earnings growth was slowing. Given such
conditions, we took our time
buying the initial stocks for your Fund. We were defensive
because we were
concerned that many stocks might be overpriced.
We believe this strategy of buying established companies
with strong growth
prospects at reasonable prices will benefit shareholders,
particularly at a
time when many are concerned about the high level of prices
in the stock market
in general.
Growth With Value.
We focus on earnings growth while we also look for companies
that we believe
are underappreciated by the market. For example, we have
significant
investments in the basic materials industry, believing that
these cyclically
sensitive industrial commodities are poised to participate
in worldwide growth.
Portfolio Breakdown.
Expressed as a percentage of
total investments as of 3/31/97.
(GRAPH)
<PAGE>
What Went Well.
- ------------------------------------------------------------
- -------------------
We Had Some Winners.
Several of our stocks performed exceptionally well during
the period. We found
them in a variety of different industries, they had one
thing in common -- all
were experiencing strong corporate earnings growth.
- - Delta Airlines benefited from the recent boom in the
domestic airline
industry, recently reporting earnings above Wall Street
expectations.
- - The New York Times continued to execute its operating
strategy well. Earnings
received a boost from increased advertising lineage and
rates combined with
reductions in newsprint costs.
- - CIGNA, the insurance and financial services company, also
exceeded earnings
expectations. Its ongoing restructuring is on target, with
all sectors of the
business on or ahead of plan.
And Great Expectations.
We have high hopes for the basic materials industry. The
global economy is
gaining strength, and we believe that some of the more
cyclically sensitive
industrial commodities are very well positioned to
participate in this growth.
So, we now hold a larger than market share in basic
materials, including such
com-panies as Reynolds Metals, Boise Cascade and Newmont
Mining.
And Not So Well.
- ------------------------------------------------------------
- -------------------
Not all earnings news has been good, however. Computer giant
IBM suffered
during the period due to investor nervousness about the
level of first quarter
earnings.
The energy sector, including our holdings in Anadarko
Petroleum, did not
perform as well as we had hoped in a period of falling
energy prices.
Despite these setbacks, we continue to hold these stocks
because we like their
prospects for growth.
Five Largest Holdings.
4.0% CIGNA
Insurance
3.2% General Motors
Automobiles and Trucks
2.6% IBM
Computer Systems
2.5% Westinghouse
Electrical Equipment
2.5% Delta Airlines
Airlines
Expressed as a percentage of total investments as of
3/31/97.
Looking Ahead.
- ------------------------------------------------------------
- -------------------
We are maintaining our relatively defensive posture because
of current
valuation concerns. We are pleased with the earnings growth
and valuation of
the portfolio and we will continue to invest
opportunistically in stocks of
established companies with good growth prospects and
attractive valuations.
1
<PAGE>
President's Letter
May 14, 1997
- ------------------------------------------------------------
- -----------
(PICTURE)
We're On Your Side
Dear Shareholder:
The past few months were mixed for most U.S. stock and bond
investors. The
recent news was good: The Dow Jones Industrial Average set
several record highs
in May and long-term interest rates were easing. The average
stock and bond
mutual fund finished the four-month period ending in April
in positive
territory. It was a different story only a few weeks earlier
when the Dow
declined significantly from another record high set in mid-
March, and long-term
interest rates were at the highest levels in six months.
The reasons behind these recent market swings have been
widely publicized --
higher interest rates and inflationary pressures. And while
we are watching
market developments closely, we are also very concerned
about you and how
you're dealing with events. We realize that staying the
course during times of
market uncertainty isn't easy. Here are some thoughts that
may help:
- - Keep Your Expectations Realistic. The best investors know
that financial
markets rise and fall -- and so too, will the value of
their investments.
Over time, however, stocks have been shown to produce very
attractive returns
that were well ahead of inflation.
- - Remember Your Time Horizon. If your investment goals are
long term (several
years or more), your time horizon should also be long
term. During this
period, it's not unusual for stocks and bonds to
experience several periods
of market uncertainty.
- - We're On Your Side. Your Prudential Securities Financial
Advisor or
Prudential Registered Representative can help you
understand what's
happening in the financial markets. They can assist you in
making informed
decisions based upon a thorough knowledge of your
financial needs and
long-term goals. Call him or her today.
Thank you for your continued confidence in Prudential mutual
funds. We'll do
everything we can to keep you informed and to earn your
trust.
Sincerely,
Brian M. Storms
President, Prudential Mutual Funds & Annuities
2
<PAGE>
Portfolio of Investments as of PRUDENTIAL JENNISON
SERIES FUND, INC.
March 31, 1997 PRUDENTIAL JENNISON
GROWTH &
(Unaudited) INCOME FUND
- ------------------------------------------------------------
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value (Note 1)
<C> <S> <C>
- ------------------------------------------------------------
LONG-TERM INVESTMENTS--81.0%
COMMON STOCKS--81.0%
- ------------------------------------------------------------
Aerospace/Defense--2.6%
4,400 Boeing Co. $
433,950
34,600 General Motors Corp., Class H
1,877,050
---------
- ---
2,311,000
- ------------------------------------------------------------
Airlines--2.5%
26,300 Delta Airlines, Inc.
2,212,487
- ------------------------------------------------------------
Aluminum--2.4%
34,300 Reynolds Metals Co.
2,126,600
- ------------------------------------------------------------
Automobiles & Trucks--3.2%
50,200 General Motors Corp.
2,779,825
- ------------------------------------------------------------
Banking--4.5%
11,700 Chase Manhattan Corp.
1,095,412
19,100 Fleet Financial Group, Inc.
1,093,475
136,600 Hibernia Corp., Class A
1,792,875
---------
- ---
3,981,762
- ------------------------------------------------------------
Building & Related Industries--0.8%
15,800 York International Corp.
661,625
- ------------------------------------------------------------
Business Services--4.0%
38,500 CUC International, Inc. (a)
866,250
21,800 Manpower, Inc.
784,800
63,000 Ryder System, Inc.
1,842,750
---------
- ---
3,493,800
- ------------------------------------------------------------
Cellular Communications--0.7%
13,300 Vodafone Group PLC (ADR) (United
Kingdom)
586,863
Commercial Services--1.5%
64,300 Ogden Corp. $
1,358,338
- ------------------------------------------------------------
Computer Systems/Peripherals--5.5%
22,300 Hewlett-Packard Co.
1,187,475
92,400 Intergraph Corp. (a)
716,100
16,400 International Business Machines
Corp.
2,252,950
107,400 Unisys Corp. (a)
684,675
---------
- ---
4,841,200
- ------------------------------------------------------------
Electrical Equipment--2.5%
124,700 Westinghouse Electric Corp.
2,213,425
- ------------------------------------------------------------
Hotels--1.2%
42,300 Hilton Hotels Corp.
1,025,775
- ------------------------------------------------------------
Industrial Technology/Instruments--2.8%
38,600 Millipore Corp.
1,635,675
17,100 Symbol Technologies, Inc. (a)
825,075
---------
- ---
2,460,750
- ------------------------------------------------------------
Insurance--4.0%
24,200 CIGNA Corp.
3,536,225
- ------------------------------------------------------------
Machinery--1.9%
17,200 Case Corp.
872,900
10,000 Caterpillar, Inc.
802,500
---------
- ---
1,675,400
- ------------------------------------------------------------
Manufacturing--0.8%
19,200 Kennametal, Inc.
696,000
</TABLE>
- ------------------------------------------------------------
- --------------------
See Notes to Financial Statements. 3
<PAGE>
Portfolio of Investments as of PRUDENTIAL JENNISON
SERIES FUND, INC.
March 31, 1997 PRUDENTIAL JENNISON
GROWTH &
(Unaudited) INCOME FUND
- ------------------------------------------------------------
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value (Note 1)
<C> <S> <C>
- ------------------------------------------------------------
Mining--3.4%
33,300 Asarco, Inc. $
936,562
54,300 Newmont Mining Corp.
2,104,125
---------
- ---
3,040,687
- ------------------------------------------------------------
Office Equipment & Supplies--1.3%
20,900 Xerox Corp.
1,188,688
- ------------------------------------------------------------
Oil/Petroleum Services--9.1%
29,200 Amerada Hess Corp.
1,547,600
30,700 Anadarko Petroleum Corp.
1,723,037
72,600 Dresser Industries, Inc.
2,196,150
67,400 Union Pacific Resources Group, Inc.
1,802,950
28,500 YPF Sociedad Anonima (ADR)
(Argentina)
755,250
---------
- ---
8,024,987
- ------------------------------------------------------------
Paper & Forest Products--2.7%
42,100 Boise Cascade Corp.
1,284,050
24,100 Champion International Corp.
1,096,550
---------
- ---
2,380,600
- ------------------------------------------------------------
Pharmaceuticals--2.7%
37,600 Pharmacia & Upjohn, Inc.
1,377,100
5,300 Smithkline Beecham PLC (ADR)
(United Kingdom)
371,000
15,100 Vertex Pharmaceuticals, Inc. (a)
611,550
---------
- ---
2,359,650
- ------------------------------------------------------------
Publishing--7.5%
40,800 American Greetings Corp., Class A
1,303,050
36,500 McGraw-Hill Companies, Inc.
1,866,062
37,100 New York Times Co., Class A $
1,637,038
43,700 Tribune Co.
1,769,850
---------
- ---
6,576,000
- ------------------------------------------------------------
Railroads--0.6%
9,700 Union Pacific Corp.
550,475
- ------------------------------------------------------------
Retail--2.3%
112,500 The Limited, Inc.
2,067,188
- ------------------------------------------------------------
Specialty Chemicals--7.2%
21,800 Betzdearborn, Inc.
1,376,125
49,500 Dexter Corp.
1,491,187
89,800 Engelhard Corp.
1,885,800
20,200 Minerals Technologies, Inc.
671,650
20,900 Morton International, Inc.
883,025
---------
- ---
6,307,787
- ------------------------------------------------------------
Steel & Metals--2.3%
76,600 J & L Specialty Steel, Inc.
919,200
42,100 USX-U.S. Steel Group, Inc.
1,120,913
---------
- ---
2,040,113
- ------------------------------------------------------------
Telecommunications--1.0%
24,600 MCI Communications Corp.
876,375
---------
- ---
Total long-term investments
(cost $70,500,723)
71,373,625
---------
- ---
</TABLE>
- ------------------------------------------------------------
- --------------------
See Notes to Financial Statements. 4
<PAGE>
Portfolio of Investments as of PRUDENTIAL JENNISON
SERIES FUND, INC.
March 31, 1997 PRUDENTIAL JENNISON
GROWTH &
(Unaudited) INCOME FUND
- ------------------------------------------------------------
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Moody's Amount
Rating (000) Description Value (Note
1)
<S> <C> <C> <C>
- ------------------------------------------------------------
- --
SHORT-TERM INVESTMENTS--19.1%
COMMERCIAL PAPER--8.9%
P1 $ 2,279 Chevron Oil Finance
Co.,
6.00%, 4/1/97 $
2,279,000
A1 4,094 Ford Motor Credit Co.,
5.50%, 4/11/97
4,094,000
Aaa 1,500 General Electric
Capital Corp.,
5.53%, 4/18/97
1,500,000
---------
- ---
Total commercial paper
(cost $7,873,000)
7,873,000
---------
- ---
U.S. GOVERNMENT SECURITIES--10.2%
United States Treasury
Bills
8,000(b) 4.94%, 4/3/97
7,997,805
1,000 5.20%, 4/3/97
999,711
---------
- ---
Total U.S. government
securities
(cost $8,997,516)
8,997,516
---------
- ---
Total short-term
investments
(cost $16,870,516)
16,870,516
---------
- ---
- ------------------------------------------------------------
Total investments before short sales--100.1%
(cost $87,371,239; Note
4)
88,244,141
---------
- ---
COMMON STOCKS SOLD SHORT(a)--(3.7%)
- ------------------------------------------------------------
Beverages--(1.1%)
(18,400) Coca-Cola Co. $
(1,025,800)
- ------------------------------------------------------------
Electrical Equipment--(1.2%)
(10,400) General Electric Co.
(1,032,200)
- ------------------------------------------------------------
Household & Personal Care Products--(1.4%)
(10,700) Procter & Gamble Co.
(1,227,825)
---------
- ---
Total common stocks
sold short (proceeds
at cost $3,503,413)
(3,285,825)
---------
- ---
- -------------------------------------------------
Total investments, net of short sales--96.4%
84,958,316
Other assets in excess
of liabilities--3.6%
3,192,442
---------
- ---
Net Assets--100% $
88,150,758
---------
- ---
---------
- ---
</TABLE>
- ---------------
(a) Non-income producing security.
(b) $3,500,000 of principal amount pledged as collateral for
short sales.
ADR--American Depository Receipt.
- ------------------------------------------------------------
- --------------------
See Notes to Financial Statements. 5
<PAGE>
PRUDENTIAL
JENNNISON SERIES FUND, INC.
Statement of Assets and Liabilities PRUDENTIAL JENNISON
GROWTH &
(Unaudited) INCOME FUND
- ------------------------------------------------------------
- -------------------
<TABLE>
<CAPTION>
Assets
March 31, 1997
<S>
<C>
Investments, at value (cost
$87,371,239)................................................
................... $ 88,244,141
Deposits with broker for securities sold
short.......................................................
...... 3,503,413
Receivable for Fund shares
sold........................................................
.................... 793,178
Receivable for investments
sold........................................................
.................... 792,275
Dividends and interest
receivable..................................................
........................ 106,324
Deferred expenses and other
assets......................................................
................... 75,690
- --------------
Total
assets......................................................
...................................... 93,515,021
- --------------
Liabilities
Investments sold short, at value (proceeds
$3,503,413).................................................
.... 3,285,825
Payable for investments
purchased...................................................
....................... 1,396,025
Payable for Fund shares
reacquired..................................................
....................... 448,482
Accrued expenses and other
liabilities.................................................
.................... 129,319
Distribution fees
payable.....................................................
............................. 59,440
Management fee
payable.....................................................
................................ 45,172
- --------------
Total
liabilities.................................................
...................................... 5,364,263
- --------------
Net
Assets......................................................
........................................... $
88,150,758
- --------------
- --------------
Net assets were comprised of:
Common stock, at
par.........................................................
........................... $ 8,451
Paid-in capital in excess of
par.........................................................
............... 85,846,137
- --------------
85,854,588
Undistributed net investment
income......................................................
............... 6,251
Accumulated net realized gain on
investments.................................................
........... 1,199,429
Net unrealized appreciation on investments and short
sales..............................................
1,090,490
- --------------
Net assets, March 31,
1997........................................................
......................... $ 88,150,758
- --------------
- --------------
Class A:
Net asset value and redemption price per share
($23,820,383 / 2,280,786 shares of common stock issued
and outstanding)..............................
$10.44
Maximum sales charge (5.0% of offering
price)......................................................
..... .55
- --------------
Maximum offering price to
public......................................................
.................. $10.99
- --------------
- --------------
Class B:
Net asset value, offering price and redemption price per
share
($58,722,132 / 5,632,560 shares of common stock issued
and outstanding)..............................
$10.43
- --------------
- --------------
Class C:
Net asset value, offering price and redemption price per
share
($5,445,098 / 522,306 shares of common stock issued
and outstanding).................................
$10.43
- --------------
- --------------
Class Z:
Net asset value, offering price and redemption price per
share
($163,145 / 15,573 shares of common stock issued and
outstanding)....................................
$10.48
- --------------
- --------------
</TABLE>
- ------------------------------------------------------------
- --------------------
See Notes to Financial Statements. 6
<PAGE>
PRUDENTIAL JENNISON SERIES FUND, INC.
PRUDENTIAL JENNISON GROWTH &
INCOME FUND
Statement of Operations (Unaudited)
- ------------------------------------------------------------
<TABLE>
<CAPTION>
November 7,
1996(a)
Through
Net Investment Income March 31, 1997
<S> <C>
Income
Dividends (net of foreign
withholding taxes of $1,026)..... $ 435,538
Interest and discount earned........ 381,888
-----------
Total income..................... 817,426
-----------
Expenses
Distribution fee--Class A........... 22,769
Distribution fee--Class B........... 192,287
Distribution fee--Class C........... 19,963
Management fee...................... 182,116
Registration fees................... 68,000
Transfer agent's fees and
expenses......................... 47,000
Legal fees and expenses............. 47,000
Reports to shareholders............. 44,000
Custodian's fees and expenses....... 35,000
Audit fees and expenses............. 10,000
Directors' fees..................... 5,000
Miscellaneous....................... 2,603
-----------
Total expenses................... 675,738
-----------
Net investment income.................. 141,688
-----------
Realized and Unrealized Gain
on Investments
Net realized gain on investment
transactions........................ 1,199,429
-----------
Net unrealized appreciation on:
Investments......................... 872,902
Short sales......................... 217,588
-----------
1,090,490
-----------
Net gain on investments................ 2,289,919
-----------
Net Increase in Net Assets Resulting
from Operations........................ $2,431,607
-----------
-----------
</TABLE>
- ---------------
(a) Commencement of investment operations.
PRUDENTIAL JENNISON SERIES FUND, INC.
PRUDENTIAL JENNISON GROWTH &
INCOME FUND
Statement of Changes in Net Assets (Unaudited)
- ------------------------------------------------------------
<TABLE>
<CAPTION>
November 7,
1996(a)
Increase (Decrease) Through
in Net Assets March 31, 1997
<S> <C>
Operations
Net investment income............... $ 141,688
Net realized gain on investments.... 1,199,429
Net unrealized appreciation of
investments...................... 1,090,490
------------------
- --
Net increase in net assets resulting
from operations.................. 2,431,607
------------------
- --
Dividends from net investment income
Class A............................. (59,278)
Class B............................. (68,649)
Class C............................. (7,510)
------------------
- --
(135,437)
------------------
- --
Fund share transactions (net of share
conversion) (Note 5)
Net proceeds from shares sold....... 93,572,144
Net asset value of shares issued in
reinvestment of dividends and
distributions.................... 124,907
Cost of shares reacquired........... (7,842,563)
------------------
- --
Net increase in net assets from Fund
share transactions............... 85,854,488
------------------
- --
Total increase......................... 88,150,658
Net Assets
Beginning of period.................... 100
------------------
- --
End of period.......................... $ 88,150,758
------------------
- --
------------------
- --
</TABLE>
- ---------------
(a) Commencement of investment operations.
- ------------------------------------------------------------
- --------------------
See Notes to Financial Statements. 7
<PAGE>
PRUDENTIAL
JENNISON SERIES FUND, INC.
Notes to Financial Statements PRUDENTIAL
JENNISON GROWTH &
(Unaudited) INCOME FUND
- ------------------------------------------------------------
- -------------------
Prudential Jennison Growth & Income Fund (the 'Series') is a
separately managed
series of Prudential Jennison Series Fund, Inc., formerly
Prudential Jennison
Fund, Inc. (the 'Fund'). The Fund was incorporated in
Maryland on August 10,
1995 and is registered under the Investment Company Act of
1940 as a
diversified, open-end management investment company.
Investment operations
commenced on November 7, 1996.
The Series' investment objective is to achieve long-term
growth of capital and
income, with current income as a secondary objective. The
Series seeks to
achieve its objectives by investing primarily in common
stocks of established
companies with growth prospects believed to be
underappreciated by the market.
- ------------------------------------------------------------
Note 1. Accounting Policies
The following is a summary of significant accounting
policies followed by the
Series in the preparation of its financial statements.
Securities Valuation: Securities listed on a securities
exchange (other than
options on securities and indices) are valued at the last
sales price on the day
of valuation, or, if there was no sale on such day, at the
average of readily
available closing bid and asked prices on such day as
provided by a pricing
service. Securities that are actively traded in the over-the-
counter market,
including listed securities for which the primary market is
believed to be
over-the-counter, are valued by an independent pricing
service. Convertible debt
securities that are actively traded in the over-the-counter
market, including
listed securities for which the primary market is believed
to be
over-the-counter, are valued at the average of the most
recently quoted bid and
asked prices provided by a principle market maker or dealer.
Options on
securities and indices traded on an exchange are valued at
the average of the
most recently quoted bid and asked prices provided by the
respective exchange.
Futures contracts and options thereon are valued at the last
sales price as of
the close of business of the exchange. Securities for which
market quotations
are not readily available are valued at fair value as
determined in good faith
by or under the direction of the Board of Directors of the
Fund.
Short-term securities which mature in more than 60 days are
valued at current
market quotations. Short-term securities which mature in 60
days or less are
valued at amortized cost.
All securities are valued as of 4:15 p.m., New York time.
Securities Transactions and Net Investment Income:
Securities transactions are
recorded on the trade date. Realized gains or losses on
sales of securities are
calculated on the identified cost basis. Dividend income is
recorded on the
ex-dividend date; interest income is recorded on the accrual
basis. Expenses are
recorded on the accrual basis which may require the use of
certain estimates by
management.
Net investment income, other than distribution fees, and
realized and unrealized
gains or losses are allocated daily to each class of shares
based upon the
relative proportion of net assets of each class at the
beginning of the day.
Short Sales: The Series may sell a security it does not own
in anticipation of a
decline in the market value of that security (short sale).
When the Fund makes a
short sale, it must borrow the security sold short and
deliver it to the
broker-dealer through which it made the short sale as
collateral for its
obligation to deliver the security upon conclusion of the
sale. The Fund may
have to pay a fee to borrow the particular security and may
be obligated to pay
over any payments received on such borrowed securities. A
gain, limited to the
price at which the Fund sold the security short, or a loss,
unlimited in
magnitude, will be recognized upon the termination of a
short sale if the market
price at termination is less than or greater than,
respectively, the proceeds
originally received.
Dividends and Distributions: The Series expects to pay
dividends of net
investment income, if any, semi-annually and to make
distributions of any net
capital gains at least annually. Dividends and distributions
are recorded on the
ex-dividend date. Income distributions and capital gain
distributions are
determined in accordance with income tax regulations which
may differ from
generally accepted accounting principles.
Taxes: It is the Series' policy to meet the requirements of
the Internal Revenue
Code applicable to regulated investment companies and to
distribute all of its
taxable net income to its shareholders. Therefore, no
federal income tax
provision is required.
Withholding taxes on foreign dividends have been provided
for in accordance with
the Series' understanding of the applicable country's tax
rules and rates.
- ------------------------------------------------------------
Note 2. Agreements
The Fund has a management agreement with Prudential
Investments Fund Management
LLC ('PIFM'). Pursuant to a subadvisory agreement
- ------------------------------------------------------------
- --------------------
8
<PAGE>
PRUDENTIAL
JENNISON SERIES FUND, INC.
Notes to Financial Statements PRUDENTIAL
JENNISON GROWTH &
(Unaudited) INCOME FUND
- ------------------------------------------------------------
- -------------------
between PIFM and Jennison Associates Capital Corp.
('Jennison'), Jennison
furnishes investment advisory services in connection with
the management of the
Fund. Under the subadvisory agreement, Jennison, subject to
the supervision of
PIFM, is responsible for managing the assets of the Series
in accordance with
its investment objectives, and policies.
The management fee paid PIFM is computed daily and payable
monthly, at an annual
rate of .60 of 1% of the average daily net assets of the
Series. PIFM pays
Jennison a subadvisory fee at an annual rate of .30 of 1% of
the average daily
net assets of the Series up to and including $300 million
and .25 of 1% of such
assets in excess of $300 million. PIFM also pays the cost of
compensation of
officers and employees of the Fund, occupancy and certain
clerical and
bookkeeping costs of the Fund. The Fund bears all other
costs and expenses.
The Fund has a distribution agreement with Prudential
Securities Incorporated
('PSI'), which acts as the distributor of the Class A, Class
B, Class C and
Class Z shares of the Fund. The Fund compensates PSI for
distributing and
servicing the Fund's Class A, Class B and Class C shares,
pursuant to plans of
distribution, (the 'Class A, B and C Plans') regardless of
expenses actually
incurred by them. The distribution fees are accrued daily
and payable monthly.
No distribution or service fees are paid to PSI as
distributor of the Class Z
shares of the Fund.
Pursuant to the Class A, B and C Plans, the Fund compensates
PSI for
distribution-related activities at an annual rate of up to
.30 of 1%, 1% and 1%
of the average daily net assets of the Class A, B and C
shares, respectively.
With respect to the Class A Plan, PSI has agreed to limit
its
distribution-related costs to .25 of 1% of average daily net
assets for the
period ended March 31, 1997. With respect to the Class B and
Class C Plans, the
Fund compensates PSI for its distribution-related costs at
an annual rate of 1%
of the average daily net assets.
PSI has advised the Series that it has received
approximately $71,000 in
front-end sales charges resulting from sales of Class A
shares during the period
ended March 31, 1997. From these fees, PSI paid such sales
charges to affiliated
broker-dealers, which in turn paid commissions to
salespersons and incurred
other distribution costs.
PSI has advised the Series that for the period ended March
31, 1997, it received
approximately $35,000 and $600 in contingent deferred sales
charges imposed upon
certain redemptions by Class B and C shareholders,
respectively.
PIFM, Jennison and PSI are wholly-owned subsidiaries of The
Prudential Insurance
Company of America.
The Fund, along with other affiliated registered investment
companies (the
'Funds'), entered into a credit agreement (the 'Agreement')
on December 31, 1996
with an unaffiliated lender. The maximum commitment under
the Agreement is
$200,000,000. The Agreement expires on December 30, 1997.
Interest on any such
borrowings outstanding will be at market rates. The purpose
of the Agreement is
to serve as an alternative source of funding for capital
share redemptions. The
Fund has not borrowed any amounts pursuant to the Agreement
as of March 31,
1997. The Funds pay a commitment fee at an annual rate of
.055 of 1% on the
unused portion of the credit facility. The commitment fee is
accrued and paid
quarterly on a pro-rata basis by the Funds.
- ------------------------------------------------------------
Note 3. Other Transactions with Affiliates
Prudential Mutual Fund Services LLC ('PMFS'), a wholly-owned
subsidiary of PIFM,
serves as the Fund's transfer agent. During the period ended
March 31, 1997, the
Fund incurred fees of approximately $25,000 for the services
of PMFS. As of
March 31, 1997, approximately $8,000 of such fees were due
to PMFS. Transfer
agent fees and expenses in the Statement of Operations
include certain
out-of-pocket expenses paid to non-affiliates. For the
period ended March 31,
1997, PSI earned approximately $139,200 in brokerage
commissions from portfolio
transactions executed on behalf of the Fund.
- ------------------------------------------------------------
Note 4. Portfolio Securities
Purchases and sales of investment securities, other than
short-term investments,
for the period ended March 31, 1997 were $83,126,562 and
$13,825,267,
respectively.
The cost basis of the investments for federal income tax
purposes at March 31
1997, was $87,381,146 and, accordingly, net unrealized
appreciation of
investments for federal income tax purposes was $862,995
(gross unrealized
appreciation-$3,448,098; gross unrealized depreciation--
$2,585,103).
- ------------------------------------------------------------
Note 5. Capital
The Fund offers Class A, Class B, Class C and Class Z
shares. Class A shares are
sold with a front-end sales charge of up to 5%. Class B
shares are sold with a
contingent deferred sales charge which declines from 5%
- ------------------------------------------------------------
- --------------------
9
<PAGE>
PRUDENTIAL
JENNISON SERIES FUND, INC.
Notes to Financial Statements PRUDENTIAL
JENNISON GROWTH &
(Unaudited) INCOME FUND
- ------------------------------------------------------------
- -------------------
to zero depending on the period of time the shares are held.
Class B shares will
automatically convert to Class A shares on a quarterly basis
approximately seven
years after purchase. A special exchange privilege is also
available for
shareholders who qualified to purchase Class A shares at net
asset value. Class
C shares are sold with a contingent deferred sales charge of
1% during the first
year. Class Z shares are not subject to any sales or
redemption charge and are
offered exclusively for sale to a limited group of
investors.
There are 1.25 billion shares of $.001 par value common
stock authorized which
are divided into four classes, designated Class A, Class B,
Class C and Class Z,
each of which consists of 500 million, 250 million, 250
million and 250 million
authorized shares, respectively.
Transactions in shares of common stock for the period
November 7, 1996
(commencement of investment operations) through March 31,
1997 were as follows:
<TABLE>
<CAPTION>
Class A Shares
Amount
- -------------------------------------- ---------- -------
- ----
<S> <C> <C>
Shares sold........................... 2,706,866
$27,486,098
Shares issued in reinvestment of
dividends........................... 5,230
54,030
Shares reacquired..................... (431,435)
(4,592,257)
---------- -------
- ----
Net increase in shares outstanding
before conversion................... 2,280,661
22,947,871
Shares issued upon conversion from
Class B............................. 125
1,354
---------- -------
- ----
Net increase in shares outstanding.... 2,280,786
$22,949,225
---------- -------
- ----
---------- -------
- ----
<CAPTION>
Class B Shares
Amount
- -------------------------------------- ---------- -------
- ----
<S> <C> <C>
Shares sold........................... 5,918,529
$60,487,397
Shares issued in reinvestment of
dividends........................... 6,162
63,653
Shares reacquired..................... (292,006)
(3,084,972)
---------- -------
- ----
Net increase in shares outstanding
before conversion................... 5,632,685
57,466,078
Shares reacquired upon conversion into
Class A............................. (125)
(1,354)
---------- -------
- ----
Net increase in shares outstanding.... 5,632,560
$57,464,724
---------- -------
- ----
---------- -------
- ----
<CAPTION>
Class C
- --------------------------------------
<S> <C> <C>
Shares sold........................... 527,092 $
5,317,946
Shares issued in reinvestment of
dividends........................... 699
7,224
Shares reacquired..................... (5,485)
(56,689)
---------- -------
- ----
Net increase in shares outstanding.... 522,306 $
5,268,481
---------- -------
- ----
---------- -------
- ----
<CAPTION>
Class Z
- --------------------------------------
<S> <C> <C>
Shares sold........................... 25,959 $
280,703
Shares reacquired..................... (10,386)
(108,645)
---------- -------
- ----
Net increase in shares outstanding.... 15,573 $
172,058
---------- -------
- ----
---------- -------
- ----
</TABLE>
- ------------------------------------------------------------
- --------------------
10
<PAGE>
PRUDENTIAL
JENNISON SERIES FUND, INC.
PRUDENTIAL
JENNISON GROWTH &
Financial Highlights (Unaudited) INCOME FUND
- ------------------------------------------------------------
- -------------------
<TABLE>
<CAPTION>
Class A Class B Class C Class Z
----
- -------- ------------ ------------ ------------
November 7, November 7, November 7, November
7,
1996(a) 1996(a) 1996(a) 1996(a)
Through Through Through Through
March 31, March 31, March 31, March 31,
1997 1997 1997 1997
----
- -------- ------------ ------------ ------------
<S> <C>
<C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period................ $
10.00 $ 10.00 $ 10.00 $ 10.00
- ------ ------------ ------ ------------
Income from investment operations
Net investment income...............................
.04 .01 .01 .05
Net realized and unrealized gain on investment
transactions.....................................
.43 .44 .44 .46
- ------ ------------ ------ ------------
Total from investment operations.................
.47 .45 .45 .51
- ------ ------------ ------ ------------
Less distributions
Dividends from net investment income................
(.03) (.02) (.02) (.03)
- ------ ------------ ------ ------------
Net asset value, end of period...................... $
10.44 $ 10.43 $ 10.43 $ 10.48
- ------ ------------ ------ ------------
- ------ ------------ ------ ------------
TOTAL RETURN(c).....................................
4.47% 4.16% 4.16% 4.81%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000)..................... $
23,820 $ 58,722 $ 5,445 $ 163
Average net assets (000)............................ $
23,085 $ 48,739 $ 5,060 $ 51
Ratios to average net assets(b):
Expenses, including distribution fees............
1.70% 2.45% 2.45% 1.45%
Expenses, excluding distribution fees............
1.45% 1.45% 1.45% 1.45%
Net investment income............................
.99% .24% .24% 1.24%
Portfolio turnover rate.............................
23% 23% 23% 23%
Average commission rate paid per share.............. $
.0553 $ .0553 $ .0553 $ .0553
</TABLE>
- ---------------
(a) Commencement of investment operations.
(b) Annualized.
(c) Total return does not consider the effects of sales
loads. Total return is
calculated assuming a purchase of shares on the first
day and a sale on the
last day of each period reported and includes
reinvestment of dividends and
distributions. Total returns for periods of less than a
full year are not
annualized.
- ------------------------------------------------------------
- --------------------
See Notes to Financial Statements. 11
<PAGE>
Prudential Mutual Funds
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 225-1852
http://www.prudential.com
Directors
Edward D. Beach
Delayne Dedrick Gold
Robert F. Gunia
Donald D. Lennox
Douglas H. McCorkindale
Mendel A. Melzer
Thomas T. Mooney
Stephen P. Munn
Richard A. Redeker
Robin B. Smith
Louis A. Weil, III
Clay T. Whitehead
Officers
Richard A. Redeker, President
Susan C. Cote, Vice President
Thomas A. Early, Vice President
Grace C. Torres, Treasurer
Stephen M. Ungerman, Assistant Treasurer
S. Jane Rose, Secretary
Marguerite E.H. Morrison, Assistant Secretary
Manager
Prudential Investments Fund Management LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
Investment Adviser
Jennison Associates Capital Corporation
466 Lexington Avenue
New York, NY 10017
Distributor
Prudential Securities Incorporated
One Seaport Plaza
New York, NY 10292
Custodian
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
Transfer Agent
Prudential Mutual Fund Services LLC
P.O. Box 15005
New Brunswick, NJ 08906
Independent Auditors
Price Waterhouse LLP
1177 Avenue of the Americas
New York, NY 10036
Legal Counsel
Gardner, Carton & Douglas
Quaker Tower
321 North Clark Street
Chicago, IL 60610-4795
The views expressed in this report and information about the
Fund's portfolio
holdings are for the period covered by this report and are
subject to change
thereafter.
The accompanying financial statements as of March 31, 1997
were not audited
and, accordingly, no opinion is expressed on them.
This report is not authorized for distribution to
prospective investors unless
preceded or accompanied by a current prospectus.
<PAGE>
(LOGO)
Prudential Mutual Funds
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 225-1852
BULK RATE
U.S. POSTAGE
PAID
Permit 6807
New York, NY
74437E503
74437E602 MF172E2
74437E701 Cat#42M248I
74437E800
(ICON)
Prudential
Jennison
Growth
Fund
SEMI
ANNUAL
REPORT
March 31, 1997
(LOGO)
<PAGE>
Prudential Jennison Growth Fund
A Series of the Prudential Jennison Series Fund, Inc.
Performance At A Glance.
Stocks, led by the largest companies, surged to record highs
over the six
months ending in March. The stock market then began to slump
as the prospect
of rising interest rates and slowing corporate earnings made
many investors
edgy. The Prudential Jennison Growth Fund posted a small
gain during the
period, but did not perform as well as the average growth
fund, as measured by
Lipper Analytical Services. Our significant holdings in
midsized company
stocks hurt performance. However, we believe these stocks
will be very
attractive over the intermediate term.
<TABLE>
<CAPTION>
Cumulative
Total
Returns1
As of 3/31/97
Six One
Since
Months Year
Inception2
<S> <C> <C>
<C>
Class A 1.7% 7.4%
11.6%
Class B 1.4 6.6
10.4
Class C 1.4 6.6
10.4
Class Z 1.9 8.9
87.1
Lipper Growth Fds3 4.1 11.8
17.9
</TABLE>
<TABLE>
<CAPTION>
Average
Annual Total
Returns1
As of 3/31/97
One
Since
Year
Inception2
<S> <C>
<C>
Class A 2.0%
4.2%
Class B 1.6
4.5
Class C 5.6
7.3
Class Z 8.9
15.3
</TABLE>
Past performance is not indicative of future results.
Principal and investment
return will fluctuate so that an investor's shares, when
redeemed, may be worth
more or less than their original cost.
1Source: Prudential Investments Fund Management and Lipper
Analytical Services.
The cumulative total returns do not take into account sales
charges. The
average annual returns do take into account applicable sales
charges. The Fund
charges a maximum front-end sales load of 5% for Class A
shares and a declining
contingent deferred sales charge (CDSC) of 5%, 4%, 3%, 2%,
1% and 1% for six
years, for Class B shares. Class C shares have a 1% CDSC for
one year. Class B
shares will automatically convert to Class A shares on a
quarterly basis,
approximately seven years after purchase. Class Z shares are
not subject to a
sales charge or a distribution fee.
2Inception date: 11/2/95 for Class A, Class B and Class C
shares. On 9/20/96,
the Prudential Institutional Growth Stock Fund ("PIF")
merged into the
Prudential Jennison Growth Fund, Class Z shares. Performance
prior to 9/20/96
is for the PIF Growth Stock Fund, which had an inception
date of 11/5/92. The
inception date of the Prudential Jennison Growth Fund Class
Z shares was
4/15/96. The total return since inception (4/15/96) is 8.4%
with calendar
year-to-date total return through 3/31/97 of -2.1%.
3Lipper average returns are for 803 funds for six months,
738 funds for one
year, and 671 funds since inception of the Class A, Class B
and Class C shares
on 11/2/95.
How Investments Compared.
(As of 3/31/97)
(GRAPH)
U.S. General General U.S.
Growth Bond Muni Debt Taxable
Funds Funds Funds Money Funds
Source: Lipper Analytical Services. Financial markets
change, so a mutual
fund's past performance should never be used to predict
future results. The
risks to each of the investments listed above are different
- -- we provide 12-
month total returns for several Lipper mutual fund
categories to show you that
reaching for higher yields means tolerating more risk. The
greater the risk,
the larger the potential reward or loss. In addition, we've
included
historical 20-year average annual returns. These returns
assume the
reinvestment of dividends.
U.S. Growth Funds will fluctuate a great deal. Investors
have received higher
historical total returns from stocks than from most other
invest-ments. Smaller
capitalization stocks offer greater potential for long-term
growth but may be
more volatile than larger capitalization stocks.
General Bond Funds provide more income than stock funds,
which can help smooth
out their total returns year by year. But their prices still
fluctuate
(sometimes significantly) and their returns have been
historically lower than
those of stock funds.
General Municipal Debt Funds invest in bonds issued by state
governments,
state agencies and/or municipalities. This investment
provides income that is
usually exempt from federal and state income taxes.
Taxable Money Market Funds attempt to preserve a constant
share value; they
don't fluctuate much in price but, historically, their
returns have been
generally among the lowest of the major investment
categories.
<PAGE>
David Poiesz, Fund Manager
Peter Reinemann, Associate Fund Manager
(PHOTOS)
Portfolio
Managers'
Report
The Prudential Jennison Growth Fund invests primarily in
stocks of medium and
large companies (generally those with a total market value
of at least $1
billion) with above-average growth prospects. The Fund may
also invest in
stocks of foreign companies, investment grade bonds, and
securities issued or
backed by the U.S. government and its agencies, such as
mortgage backed
securities. There can be no assurance that the Fund will
reach its investment
objective.
Growth vs. Value.
There are two major schools of investing: growth and value.
Value investors
hunt for bargains -- companies that are fundamentally sound,
but whose stock
prices have declined due to a business problem or market
condition the investor
believes to be temporary. Growth investors, like us, buy
stocks of companies
that they believe have sales and earnings growing at a rate
higher than the
overall market.
Strategy Session.
Our strategy is to look for companies with above average
returns on equity and
assets, growth in sales and/or earnings or other fundamental
strengths. We
consider many factors, including the quality of management
and new products,
and whether a company's products or services fill a unique
need. We continue
to own stocks that we believe are cheap -- those selling at
low prices in
comparison with their expected earnings.
We continue to like medium- to large-company stocks with
solid earnings growth
potential over the next 12 to 18 months. This has led us to
increase holdings
in health care (particularly pharmaceuticals), financial
services, business
services (such as First Data and Reuters) and outsourcing,
among others.
In the consumer nondurables sector, we believe some stocks
have gotten ahead
of themselves in valuation, while others remain attractive
on improved
financials, such as Gillette and Disney. Consequently, we
have reduced our
exposure to this area.
We also slightly increased our technology holdings,
maintaining a larger
position in this sector than the broader market. We believe
the price declines
in this area were overdone earlier this year. Although
disappointing news for
some companies contributed to the decline of technology
stock prices in
general, we remain committed to these stocks.
Technology is the sector with the fastest earnings growth to
date in 1997, and
we expect a vigorous recovery. In fact, earnings performance
has come in
better than expected among our holdings.
Portfolio Breakdown.
Expressed as a percentage of
total investments as of 3/31/97.
(PIE CHART)
<PAGE>
What Went Well.
Technology Giveth ...
How volatile was technology? During the past six months,
seven of the
portfolio's top-performing stocks were in this sector. These
included a number
of top-performing companies with strong and improving
businesses, such as
semiconductor giant Intel, computer maker Dell, software
staple Microsoft,
magnetic disk drive maker Seagate Technology, and two
leaders in wireless
communication, Nokia and Ericsson.
We also saw some success in the drug industry. Strong
product pipelines and
improving profitability in pharmaceutical companies Eli
Lilly, Bristol Meyers
Squibb, Johnson & Johnson and Pfizer all helped the
portfolio during the
period. We did, however, eliminate our position in Johnson &
Johnson during
the period due to anticipation of slowing U.S. profit growth
next year.
Five Largest
Holdings.
3.2% Intel
Electronic Components
2.7% Boeing
Aerospace/Defense
2.6% Disney
Media
2.5% Hewlett Packard
Computer Systems
2.4% Merck & Co.
Pharmaceuticals
Expressed as a percentage of total investments as of
3/31/97.
And Not So Well.
... And Technology Taketh Away.
Conversely, five of the ten worst-performing stocks in the
portfolio were also
in technology. Notable poor performers included computer
communications firm
3Com, which is taking time to work through its recent
acquisition of US
Robotics. However, we believe in the long term this will
prove to be a
valuable deal for 3Com. Communications networking companies
Ascend
Communications and Cisco Systems also suffered during the
period, though we
continue to think each is well positioned.
Despite these setbacks in technology, we remain committed to
this volatile
sector, where we believe there is superior long-term growth
potential. A
stock's price performance is often based on short-term,
quarter-to-quarter
corporate profit expectations, a view so narrow that we
cannot allow it to
affect our longer term perspective in the Fund.
Looking Ahead.
We are cautious about the stock market's short-term
prospects. After seeing
nearly six years of consistently rising market levels,
investors may become
increasingly concerned about slower corporate earnings
growth and the Federal
Reserve Board's decision to increase short-term interest
rates.
In light of these situations, we believe the Fund is
positioned well. Our
portfolio is composed of the stocks of companies whose
earnings we expect to
grow on average more than 20% annually over the next year or
so. At the same
time, the portfolio is selling at an unusually low valuation
versus the
average of the market as a whole. Going forward, we believe
investors in
attractively valued companies, which deliver earnings
growth, will be rewarded
by the market. The Fund is positioned well to take advantage
of this potential
- ------------------------------------------------------------
- -------------------
1
<PAGE>
President's Letter
May 14, 1997
(PHOTO)
We're On Your Side
Dear Shareholder:
The past few months were mixed for most U.S. stock and bond
investors. The
recent news was good: The Dow Jones Industrial Average set
several record
highs in May and long-term interest rates were easing. The
average stock and
bond mutual fund finished the four-month period ending in
April in positive
territory. It was a different story only a few weeks earlier
when the Dow
declined significantly from another record high set in mid-
March, and long-
term interest rates were at the highest levels in six
months.
The reasons behind these recent market swings have been
widely publicized --
higher interest rates and inflationary pressures. And while
we are watching
market developments closely, we are also very concerned
about you and how
you're dealing with events. We realize that staying the
course during times
of market uncertainty isn't easy. Here are some thoughts
that may help:
- - Keep Your Expectations Realistic. The best investors know
that financial
markets rise and fall -- and so too, will the value of
their investments.
Over time, however, stocks have been shown to produce
very attractive
returns that were well ahead of inflation.
- - Remember Your Time Horizon. If your investment goals are
long term (several
years or more), your time horizon should also be long
term. During this
period, it's not unusual for stocks and bonds to
experience several periods
of market uncertainty.
- - We're On Your Side. Your Prudential Securities Financial
Advisor or
Prudential Registered Representative can help you
understand what's
happening in the financial markets. They can assist you
in making informed
decisions based upon a thorough knowledge of your
financial needs and long-
term goals. Call him or her today.
Thank you for your continued confidence in Prudential mutual
funds. We'll do
everything we can to keep you informed and to earn your
trust.
Sincerely,
Brian M. Storms
President, Prudential Mutual Funds & Annuities
- ------------------------------------------------------------
- -------------------
2
<PAGE>
Portfolio of Investments
as of March 31, 1997 PRUDENTIAL JENNISON SERIES
FUND, INC.
(Unaudited) PRUDENTIAL JENNISON GROWTH
FUND
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value (Note 1)
<C> <S> <C>
- ------------------------------------------------------------
LONG-TERM INVESTMENTS--96.2%
COMMON STOCKS--96.2%
- ------------------------------------------------------------
Aerospace/Defense--2.7%
213,800 Boeing Co. $
21,086,025
- ------------------------------------------------------------
Apparel--0.9%
116,100 NIKE, Inc., Class B
7,198,200
- ------------------------------------------------------------
Banks--2.2%
180,800 Chase Manhattan Corp.
16,927,400
- ------------------------------------------------------------
Beverages--1.6%
375,200 PepsiCo, Inc.
12,240,900
- ------------------------------------------------------------
Brokerage Services--1.4%
192,600 Morgan Stanley Group, Inc.
11,315,250
- ------------------------------------------------------------
Business Services--9.1%
602,425 CUC International, Inc. (a)
13,554,562
377,600 Eagle River Interactive, Inc. (a)
4,059,200
122,100 Federal Express Corp., Class A (a)
6,364,463
363,166 First Data Corp.
12,302,248
161,000 Manpower, Inc.
5,796,000
262,100 Omnicom Group, Inc.
13,072,237
264,500 Reuters Holdings PLC (ADR)
(United Kingdom)
15,390,594
---------
- ---
70,539,304
- ------------------------------------------------------------
Cellular Communications--1.2%
208,900 Vodafone Group PLC (ADR) (United
Kingdom)
9,217,713
- ------------------------------------------------------------
Computer Systems/Peripherals--9.5%
187,800 Compaq Computer Corp. (a)
14,390,175
196,100 Dell Computer Corp. (a)
13,261,263
362,300 Hewlett-Packard Co.
19,292,475
81,800 International Business Machines
Corp. $
11,237,275
336,900 Seagate Technology, Inc. (a)
15,118,387
---------
- ---
73,299,575
- ------------------------------------------------------------
EDP Software & Services--6.1%
27,725 Computer Associates International,
Inc.
1,077,809
287,500 Electronic Data Systems Corp.
11,607,813
339,400 Intuit, Inc. (a)
7,891,050
174,700 Microsoft Corp. (a)
16,017,806
181,800 SAP AG (ADR)(Germany)
10,377,817
---------
- ---
46,972,295
- ------------------------------------------------------------
Electronic Components--7.3%
177,500 Intel Corp.
24,694,687
610,400 International Rectifier Corp. (a)
7,248,500
412,500 LSI Logic Corp. (a)
14,334,375
139,900 Texas Instruments, Inc.
10,475,013
---------
- ---
56,752,575
- ------------------------------------------------------------
Financial Companies--1.7%
193,400 MBNA Corp.
5,391,025
240,300 Schwab (Charles) Corp.
7,659,562
---------
- ---
13,050,587
- ------------------------------------------------------------
Health Care Services--2.9%
595,400 Healthsouth Corp. (a)
11,387,025
403,500 PhyCor, Inc. (a)
10,995,375
---------
- ---
22,382,400
- ------------------------------------------------------------
Hotels--1.5%
490,600 Hilton Hotels Corp.
11,897,050
- ------------------------------------------------------------
Household & Personal Care Products--4.2%
257,000 Gillette Co.
18,664,625
143,000 Kimberly-Clark Corp.
14,210,625
---------
- ---
32,875,250
</TABLE>
- ------------------------------------------------------------
- --------------------
-----
See Notes to Financial Statements. 3
<PAGE>
Portfolio of Investments
as of March 31, 1997 PRUDENTIAL JENNISON SERIES
FUND, INC.
(Unaudited) PRUDENTIAL JENNISON GROWTH
FUND
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value (Note 1)
<C> <S> <C>
- ------------------------------------------------------------
Industrial Technology/Instruments--4.0%
175,600 Applied Materials, Inc. (a) $
8,143,450
302,300 KLA Instruments Corp. (a)
11,033,950
246,600 Symbol Technologies, Inc. (a)
11,898,450
---------
- ---
31,075,850
- ------------------------------------------------------------
Insurance--6.7%
88,100 CIGNA Corp.
12,873,613
217,700 MGIC Investment Corp.
15,402,275
274,433 Mutual Risk Management, Ltd.
9,948,196
183,200 UNUM Corp.
13,373,600
---------
- ---
51,597,684
- ------------------------------------------------------------
Machinery--1.3%
197,100 Case Corp.
10,002,825
- ------------------------------------------------------------
Media--4.1%
269,700 Clear Channel Communications, Inc.
(a)
11,563,387
275,300 The Walt Disney Co.
20,096,900
---------
- ---
31,660,287
- ------------------------------------------------------------
Networking--3.6%
180,900 Ascend Communications, Inc. (a)
7,371,675
297,500 Cisco Systems, Inc. (a)
14,317,188
187,500 3Com Corp. (a)
6,140,625
---------
- ---
27,829,488
- ------------------------------------------------------------
Oil/Petroleum Services--4.2%
161,900 Schlumberger, Ltd.
17,363,775
574,100 Union Pacific Resources Group, Inc.
15,357,175
---------
- ---
32,720,950
- ------------------------------------------------------------
Pharmaceuticals--11.6%
186,200 Astra AB Class A (ADR)(Sweden)
8,658,300
236,400 Bristol-Myers Squibb Co.
13,947,600
183,100 Eli Lilly & Co.
15,059,975
224,100 Merck & Co., Inc.
18,880,425
201,600 Pfizer, Inc. $
16,959,600
236,300 SmithKline Beecham PLC (ADR)
(United Kingdom)
16,541,000
---------
- ---
90,046,900
- ------------------------------------------------------------
Retail--3.4%
334,100 Corporate Express, Inc. (a)
3,424,525
356,700 Gap, Inc.
11,949,450
263,000 Kohl's Corp. (a)
11,144,625
---------
- ---
26,518,600
- ------------------------------------------------------------
Telecommunications Equipment--5.0%
383,800 Ericsson (L.M.) Telephone Co.,
Inc., Class B (ADR)(Sweden)
12,977,237
258,200 Nokia Corp. (ADR)(Finland)
15,040,150
297,300 Tellabs, Inc. (a)
10,739,963
---------
- ---
38,757,350
---------
- ---
Total long-term investments
(cost $652,324,301)
745,964,458
---------
- ---
<CAPTION>
Principal
Moody's Amount
Rating (000)
<S> <C> <C> <C>
- ------------------------------------------------------------
SHORT-TERM INVESTMENT--3.0%
Commercial Paper--3.0%
P1 $ 23,102 Chevron Oil Finance Co.,
6.00%, 4/1/97
(cost $23,102,000)
23,102,000
- ------------------------------------------------------------
Total Investments--99.2%
(cost $675,426,301; Note 4)
769,066,458
Other assets in excess of
liabilities--0.8%
6,022,219
-----
- -------
Net Assets--100%
$775,088,677
-----
- -------
-----
- -------
</TABLE>
- ---------------
(a) Non-income producing security.
ADR--American Depository Receipt.
- ------------------------------------------------------------
- --------------------
-----
See Notes to Financial Statements. 4
<PAGE>
Statement of Assets and Liabilities PRUDENTIAL JENNISON
SERIES FUND, INC.
(Unaudited) PRUDENTIAL JENNISON
GROWTH FUND
- ------------------------------------------------------------
- --------------------
<TABLE>
Assets
March 31, 1997
<S>
<C>
Investments, at value (cost
$675,426,301)...............................................
................... $769,066,458
Cash........................................................
...............................................
534,960
Receivable for investments
sold........................................................
.................... 8,950,514
Receivable for Fund shares
sold........................................................
.................... 5,051,093
Dividends and interest
receivable..................................................
........................ 1,039,458
Deferred expenses and other
assets......................................................
................... 148,765
- --------------
Total
assets......................................................
...................................... 784,791,248
- --------------
Liabilities
Payable for Fund shares
reacquired..................................................
....................... 5,213,573
Payable for investments
purchased...................................................
....................... 3,555,554
Management fee
payable.....................................................
................................ 416,198
Distribution fees
payable.....................................................
............................. 268,678
Accrued expenses and other
liabilities.................................................
.................... 248,568
- --------------
Total
liabilities.................................................
...................................... 9,702,571
- --------------
Net
Assets......................................................
...........................................
$775,088,677
- --------------
- --------------
Net assets were comprised of:
Common stock, at
par.........................................................
........................... $ 69,630
Paid-in capital in excess of
par.........................................................
............... 666,189,317
- --------------
666,258,947
Accumulated net investment
loss........................................................
................. (1,465,766)
Accumulated net realized gain on
investments.................................................
........... 16,656,828
Net unrealized appreciation on
investments.................................................
............. 93,638,668
- --------------
Net assets, March 31,
1997........................................................
......................... $775,088,677
- --------------
- --------------
Class A:
Net asset value and redemption price per share
($90,708,484 / 8,126,760 shares of common stock issued
and outstanding)..............................
$11.16
Maximum sales charge (5% of offering
price)......................................................
....... .59
- --------------
Maximum offering price to
public......................................................
.................. $11.75
- --------------
- --------------
Class B:
Net asset value, offering price and redemption price per
share
($261,734,453 / 23,698,391 shares of common stock
issued and outstanding)............................
$11.04
- --------------
- --------------
Class C:
Net asset value, offering price and redemption price per
share
($15,875,241 / 1,437,412 shares of common stock issued
and outstanding)..............................
$11.04
- --------------
- --------------
Class Z:
Net asset value, offering price and redemption price per
share
($406,770,499 / 36,367,014 shares of common stock
issued and outstanding)............................
$11.19
- --------------
- --------------
</TABLE>
- ------------------------------------------------------------
- --------------------
-----
See Notes to Financial Statements. 5
<PAGE>
PRUDENTIAL JENNISON SERIES FUND, INC.
JENNISON SERIES FUND, INC.
Statement of Operations (Unaudited)
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended
Net Investment Income March 31,
1997
<S> <C>
Income
Dividends (net of foreign withholding
taxes of $91,824)..................... $ 2,882,371
Interest................................. 391,840
-------------
- -
Total income.......................... 3,274,211
-------------
- -
Expenses
Distribution fee--Class A................ 116,749
Distribution fee--Class B................ 1,297,945
Distribution fee--Class C................ 81,275
Management fee........................... 2,311,209
Transfer agent's fees and expenses....... 612,000
Custodian's fees and expenses............ 74,000
Reports to shareholders.................. 73,000
Legal fees and expenses.................. 65,000
Registration fees........................ 54,000
Amortization of deferred organization
expense............................... 18,932
Audit fees and expenses.................. 17,500
Directors' fees.......................... 5,600
Miscellaneous............................ 12,767
-------------
- -
Total expenses........................ 4,739,977
-------------
- -
Net investment loss.........................
(1,465,766)
-------------
- -
Realized and Unrealized Gain (Loss)
on Investments
Net realized gain on investment
transactions............................. 25,833,320
Net change in unrealized appreciation on
investments..............................
(15,405,203)
-------------
- -
Net gain on investments..................... 10,428,117
-------------
- -
Net Increase in Net Assets
Resulting from Operations................... $ 8,962,351
-------------
- -
-------------
- -
</TABLE>
PRUDENTIAL JENNISON SERIES FUND, INC.
JENNISON SERIES FUND, INC.
Statement of Changes in Net Assets (Unaudited)
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months November 2,
1995(a)
Ended Through
Increase (Decrease) March 31, September
30,
in Net Assets 1997 1996
<S> <C> <C>
Operations
Net investment loss...... $ (1,465,766) $
(2,046,837)
Net realized gain (loss)
on investments........ 25,833,320
(9,176,492)
Net change in unrealized
appreciation on
investments........... (15,405,203)
36,196,257
------------ -------------
- -------
Net increase in net
assets resulting from
operations............ 8,962,351
24,972,928
------------ -------------
- -------
Fund share transactions (net
of share conversion)
(Note 5)
Net proceeds from shares
sold.................. 377,247,065
819,026,956
Cost of shares
reacquired............ (305,798,095)
(149,422,528)
------------ -------------
- -------
Net increase in net
assets from Fund share
transactions.......... 71,448,970
669,604,428
------------ -------------
- -------
Total increase.............. 80,411,321
694,577,356
Net Assets
Beginning of period......... 694,677,356
100,000
------------ -------------
- -------
End of period............... $775,088,677
$694,677,356
------------ -------------
- -------
------------ -------------
- -------
- ---------------
(a) Commencement of investment operations.
</TABLE>
- ------------------------------------------------------------
- --------------------
-----
See Notes to Financial Statements. 6
<PAGE>
Notes to Financial Statements PRUDENTIAL JENNISON
SERIES FUND, INC.
(Unaudited) PRUDENTIAL JENNISON
GROWTH FUND
- ------------------------------------------------------------
- --------------------
Prudential Jennison Growth Fund (the 'Series') is a
separately managed series of
Prudential Jennison Series Fund, Inc., formerly Prudential
Jennison Fund, Inc.
(the 'Fund'). The Fund was incorporated in Maryland on
August 10, 1995 and is
registered under the Investment Company Act of 1940 as a
diversified, open-end
management investment company. The Series had no significant
operations other
than the issuance of 3,334 shares of Class A and 3,333
shares of each Class B
and Class C common stock for $100,000 on September 13, 1995
to Prudential
Investments Fund Management LLC ('PIFM'). Investment
operations commenced on
November 2, 1995.
The Series' investment objective is to achieve long-term
growth of capital by
investing primarily in equity securities (common stock,
preferred stock and
securities convertible into common stock) of established
companies with
above-average growth prospects.
- ------------------------------------------------------------
Note 1. Accounting Policies
The following is a summary of significant accounting
policies followed by the
Series in the preparation of its financial statements.
Security Valuation: Securities listed on a securities
exchange (other than
options on securities and indices) are valued at the last
sales price on the day
of valuation, or, if there was no sale on such day, at the
average of readily
available closing bid and asked prices on such day as
provided by a pricing
service. Securities that are actively traded in the over-the-
counter market,
including listed securities for which the primary market is
believed to be
over-the-counter, are valued by an independent pricing
service. Convertible debt
securities that are actively traded in the over-the-counter
market, including
listed securities for which the primary market is believed
to be
over-the-counter, are valued at the average of the most
recently quoted bid and
asked prices provided by a principle market maker or dealer.
Options on
securities and indices traded on an exchange are valued at
the average of the
most recently quoted bid and asked prices provided by the
respective exchange.
Futures contracts and options thereon are valued at the last
sales price as of
the close of business of the exchange. Securities for which
market quotations
are not readily available are valued at fair value as
determined in good faith
by or under the direction of the Board of Directors of the
Fund.
Short-term securities which mature in more than 60 days are
valued at current
market quotations. Short-term securities which mature in 60
days or less are
valued at amortized cost.
All securities are valued as of 4:15 p.m., New York time.
Securities Transactions and Net Investment Income:
Securities transactions are
recorded on the trade date. Realized gains or losses on
sales of securities are
calculated on the identified cost basis. Dividend income is
recorded on the
ex-dividend date; interest income is recorded on the accrual
basis. Expenses are
recorded on the accrual basis which may require the use of
certain estimates by
management.
Net investment income (loss), other than distribution fees,
and realized and
unrealized gains or losses are allocated daily to each class
of shares based
upon the relative proportion of net assets of each class at
the beginning of the
day.
Dividends and Distributions: The Series expects to pay
dividends of net
investment income, if any, semi-annually and to make
distributions of any net
capital gains at least annually. Dividends and distributions
are recorded on the
ex-dividend date. Income distributions and capital gain
distributions are
determined in accordance with income tax regulations which
may differ from
generally accepted accounting principles.
Taxes: It is the Series' policy to meet the requirements of
the Internal Revenue
Code applicable to regulated investment companies and to
distribute all of its
taxable net income to its shareholders. Therefore, no
federal income tax
provision is required.
Withholding taxes on foreign dividends have been provided
for in accordance with
the Series' understanding of the applicable country's tax
rules and rates.
Deferred Organization Expenses: Approximately $200,000 of
expenses were incurred
in connection with the organization of the Fund. These costs
have been deferred
and are being amortized ratably over a period of sixty
months from the date the
Series commenced investment operations.
- ------------------------------------------------------------
Note 2. Agreements
The Fund has a management agreement with Prudential
Investments Fund Management
LLC ('PIFM'). Pursuant to a subadvisory agreement between
PIFM and Jennison
Associates Capital Corp. ('Jennison'), Jennison furnishes
investment advisory
services in connection with the management of the Fund.
Under the subadvisory
agreement, Jennison, subject to the supervision of PIFM, is
responsible for
managing the assets of the Series in accordance with its
investment objectives
and policies.
The management fee paid PIFM will be computed daily and
payable monthly, at an
annual rate of .60 of 1% of the average daily net assets of
the Series. PIFM
pays Jennison a subadvisory fee at an annual rate of .30
- ------------------------------------------------------------
- --------------------
-----
7
<PAGE>
Notes to Financial Statements PRUDENTIAL JENNISON
SERIES FUND, INC.
(Unaudited) PRUDENTIAL JENNISON
GROWTH FUND
- ------------------------------------------------------------
- --------------------
of 1% of the average daily net assets of the Series up to
and including $300
million and .25 of 1% of such assets in excess of $300
million. PIFM also pays
the cost of compensation of officers and employees of the
Fund, occupancy and
certain clerical and bookkeeping costs of the Fund. The Fund
bears all other
costs and expenses.
The Fund has a distribution agreement with Prudential
Securities Incorporated
('PSI'), which acts as the distributor of the Class A, Class
B, Class C and
Class Z shares. The Fund compensates PSI for distributing
and servicing the
Fund's Class A, Class B and Class C shares, pursuant to
plans of distribution,
(the 'Class A, B and C Plans'), regardless of expenses
actually incurred by PSI.
The distribution fees are accrued daily and payable monthly.
No distribution or
service fees are paid to PSI as distributor of the Class Z
shares of the Fund.
Pursuant to the Class A, B and C Plans, the Fund compensates
PSI for
distribution-related activities at an annual rate of up to
.30 of 1%, 1% and 1%
of the average daily net assets of the Class A, B and C
shares, respectively.
With respect to the Class A Plan, PSI has agreed to limit
its
distribution-related costs to .25 of 1% of average daily net
assets for the six
months ended March 31, 1997. With respect to the Class B and
Class C Plans, the
Fund compensates PSI for its distribution-related costs at
an annual rate of 1%
of the average daily net assets.
PSI has advised the Series that it has received
approximately $222,000 in
front-end sales charges resulting from sales of Class A
shares during the six
months ended March 31, 1997. From these fees, PSI paid such
sales charges to
affiliated broker-dealers, which in turn paid commissions to
salespersons and
incurred other distribution costs.
PSI has advised the Series that for the six months ended
March 31, 1997, it
received approximately $349,200 and $3,700 in contingent
deferred sales charges
imposed upon certain redemptions by Class B and C
shareholders, respectively.
PIFM, Jennison and PSI are indirect, wholly-owned
subsidiaries of The Prudential
Insurance Company of America.
The Fund, along with other affiliated registered investment
companies (the
'Funds'), entered into a credit agreement (the 'Agreement')
on December 31, 1996
with an unaffiliated lender. The maximum commitment under
the Agreement is
$220,000,000. The Agreement expires on December 30, 1997.
Interest on any such
borrowings outstanding will be at market rates. The purpose
of the Agreement is
to serve as an alternative source of funding for capital
share redemptions. The
Fund has not borrowed any amounts pursuant to the Agreement
as of March 31,
1997. The Funds pay a commitment fee at an annual rate of
.055 of 1% on the
unused portion of the credit facility. The commitment fee is
accrued and paid
quarterly on a pro-rata basis by the Funds.
- ------------------------------------------------------------
Note 3. Other Transactions with Affiliates
Prudential Mutual Fund Services LLC ('PMFS'), a wholly-owned
subsidiary of PIFM,
serves as the Fund's transfer agent. During the six months
ended March 31, 1997,
the Fund incurred fees of approximately $561,000 for the
services of PMFS. As of
March 31, 1997, approximately $102,000 of such fees were due
to PMFS. Transfer
agent fees and expenses in the Statement of Operations
include certain
out-of-pocket expenses paid to non-affiliates. For the six
months ended March
31, 1997, PSI earned approximately $13,700 in brokerage
commissions from
portfolio transactions executed on behalf of the Fund.
- ------------------------------------------------------------
Note 4. Portfolio Securities
Purchases and sales of investment securities, other than
short-term investments,
for the six months ended March 31, 1997 were $299,397,926
and $252,265,431,
respectively.
The cost of investments for federal income tax purposes at
March 31, 1997, was
$676,579,610 and, accordingly, net unrealized appreciation
of investments for
federal income tax purposes was $92,486,848 (gross
unrealized
appreciation--$120,278,587; gross unrealized depreciation--
$27,791,739).
The Fund will elect to treat net capital losses of
approximately $6,706,000
incurred in the eleven month period ended September 30, 1996
as having been
incurred in the current year.
- ------------------------------------------------------------
Note 5. Capital
The Fund offers Class A, Class B, Class C and Class Z
shares. Class A shares are
sold with a front-end sales charge of up to 5%. Class B
shares are sold with a
contingent deferred sales charge which declines from 5% to
zero depending on the
period of time the shares are held. Class B shares
automatically convert to
Class A shares on a quarterly basis approximately seven
years after purchase. A
special exchange privilege is also available for
shareholders who qualified to
purchase Class A shares at net asset value. Class C shares
are sold with a
contingent deferred sales charge of 1% during the first
year. Class Z shares are
not subject to any sales or redemption charge and are
offered for sale to
specific categories of investors.
- ------------------------------------------------------------
- --------------------
-----
8
<PAGE>
Notes to Financial Statements PRUDENTIAL JENNISON
SERIES FUND, INC.
(Unaudited) PRUDENTIAL JENNISON
GROWTH FUND
- ------------------------------------------------------------
- --------------------
There are 2.5 billion shares of $.001 par value common stock
authorized which
are divided into four classes, designated Class A, Class B,
Class C and Class Z,
each of which consists of 1 billion, 500 million, 500
million and 500 million
authorized shares, respectively. Of the shares outstanding
at March 31, 1997,
PIFM and affiliates owned 5,673,139 shares of the Fund.
Transactions in shares of common stock were as follows:
<TABLE>
<CAPTION>
Class A Shares Amount
- ----------------------------------- ----------- ---------
- ----
<S> <C> <C>
Six months ended March 31, 1997
Shares sold........................ 11,073,129 $
128,555,705
Shares reacquired.................. (10,883,765)
(125,746,338)
----------- ---------
- ----
Net increase in shares outstanding
before conversion................ 189,364
2,809,367
Shares issued upon conversion from
Class B.......................... 147,211
1,709,025
----------- ---------
- ----
Net increase in shares
outstanding...................... 336,575 $
4,518,392
----------- ---------
- ----
----------- ---------
- ----
November 2, 1995(a) through
September 30, 1996
Shares sold........................ 18,039,463 $
185,913,237
Shares reacquired.................. (10,367,758)
(108,741,785)
----------- ---------
- ----
Net increase in shares outstanding
before conversion................ 7,671,705
77,171,452
Shares issued upon conversion from
Class B.......................... 115,146
1,214,220
----------- ---------
- ----
Net increase in shares
outstanding...................... 7,786,851 $
78,385,672
----------- ---------
- ----
----------- ---------
- ----
<CAPTION>
Class B
- -----------------------------------
Six months ended March 31, 1997
Shares sold........................ 4,731,001 $
54,455,762
Shares reacquired.................. (2,142,402)
(24,662,538)
----------- ---------
- ----
Net increase in shares outstanding
before conversion................ 2,588,599
29,793,224
Shares reacquired upon conversion
into Class A..................... (148,631)
(1,709,025)
----------- ---------
- ----
Net increase in shares
outstanding...................... 2,439,968 $
28,084,199
----------- ---------
- ----
----------- ---------
- ----
November 2, 1995(a) through
September 30, 1996
Shares sold........................ 23,516,319 $
240,060,319
Shares reacquired.................. (2,146,698)
(22,165,141)
----------- ---------
- ----
Net increase in shares outstanding
before conversion................ 21,369,621
217,895,178
Shares reacquired upon conversion
into Class A..................... (114,531)
(1,214,220)
----------- ---------
- ----
Net increase in shares
outstanding...................... 21,255,090 $
216,680,958
----------- ---------
- ----
----------- ---------
- ----
<CAPTION>
Class C Shares Amount
- ----------------------------------- ----------- ---------
- ----
<S> <C> <C>
Six months ended March 31, 1997
Shares sold........................ 188,332 $
2,168,599
Shares reacquired.................. (153,864)
(1,764,916)
----------- ---------
- ----
Net increase in shares
outstanding...................... 34,468 $
403,683
----------- ---------
- ----
----------- ---------
- ----
November 2, 1995(a) through
September 30, 1996
Shares sold........................ 1,610,012 $
16,355,793
Shares reacquired.................. (210,401)
(2,163,259)
----------- ---------
- ----
Net increase in shares
outstanding...................... 1,399,611 $
14,192,534
----------- ---------
- ----
----------- ---------
- ----
<CAPTION>
Class Z
- -----------------------------------
Six months ended March 31, 1997
Shares sold........................ 16,557,646 $
192,066,999
Shares reacquired.................. (13,208,381)
(153,624,303)
----------- ---------
- ----
Net increase in shares
outstanding...................... 3,349,265 $
38,442,696
----------- ---------
- ----
----------- ---------
- ----
April 15, 1996(a) through
September 30, 1996
Shares sold........................ 2,971,624 $
32,570,435
Shares issued due to acquisition of
fund............................. 31,510,396
344,127,172
Shares reacquired.................. (1,464,271)
(16,352,343)
----------- ---------
- ----
Net increase in shares
outstanding...................... 33,017,749 $
360,345,264
----------- ---------
- ----
----------- ---------
- ----
(a) Commencement of investment operations.
</TABLE>
- ------------------------------------------------------------
- --------------------
-----
9
<PAGE>
PRUDENTIAL JENNISON
SERIES FUND, INC.
Financial Highlights (Unaudited) PRUDENTIAL JENNISON
GROWTH FUND
- ------------------------------------------------------------
- --------------------
<TABLE>
<CAPTION>
Class A
Class B Class C
--------------------
- ------- --------------------------- ----------------
- -----------
Six
November 2, Six November 2, Six
November 2,
Months
1995(a) Months 1995(a) Months
1995(a)
Ended
Through Ended Through Ended
Through
March 31,
September 30, March 31, September 30, March 31,
September 30,
1997(d)
1996(d) 1997(d) 1996(d) 1997(d)
1996(d)
--------- ------
- ------- --------- ------------- --------- --
- -----------
<S> <C> <C>
<C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of
period........................... $ 10.97 $
10.00 $ 10.89 $ 10.00 $ 10.89
$ 10.00
--------- --
- ---- --------- ------------- ---------
- ------
Income from investment operations
Net investment loss................. (.01)
(.03) (.06 ) (.10) (.06)
(.10)
Net realized and unrealized gain on
investment transactions.......... .20
1.00 .21 .99 .21
.99
--------- --
- ---- --------- ------------- ---------
- ------
Total from investment
operations.................... .19
.97 .15 .89 .15
.89
--------- --
- ---- --------- ------------- ---------
- ------
Net asset value, end of period...... $ 11.16 $
10.97 $ 11.04 $ 10.89 $ 11.04
$ 10.89
--------- --
- ---- --------- ------------- ---------
- ------
--------- --
- ---- --------- ------------- ---------
- ------
TOTAL RETURN(c)..................... 1.73%
9.70% 1.38 % 8.90% 1.38%
8.90%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000)..... $90,708
$85,440 $261,734 $ 231,541 $15,875
$15,281
Average net assets (000)............ $93,656
$70,667 $260,302 $ 162,412 $16,300
$12,550
Ratios to average net assets(b):
Expenses, including distribution
fees.......................... 1.09%
1.23% 1.84 % 1.98% 1.84%
1.98%
Expenses, excluding distribution
fees.......................... .84%
.98% .84 % .98% .84%
.98%
Net investment income (loss)..... (.24)%
(.37)% (.99 )% (1.12)% (.99)%
(1.12)%
Portfolio turnover rate............. 34%
42% 34 % 42% 34%
42%
Average commission rate paid per
share............................ $ .0598 $
.0611 $ .0598 $ .0611 $ .0598
$ .0611
<CAPTION>
Class Z
----------------------
- -----
Six April
15,
Months
1996(a)
Ended
Through
March 31,
September 30,
1997(d)
1996(d)
--------- --------
- -----
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of
period........................... $ 10.98 $
10.32
--------- --------
- -----
Income from investment operations
Net investment loss................. --
(.02)
Net realized and unrealized gain on
investment transactions.......... .21
.68
--------- --------
- -----
Total from investment
operations.................... .21
.66
--------- --------
- -----
Net asset value, end of period...... $ 11.19 $
10.98
--------- --------
- -----
--------- --------
- -----
TOTAL RETURN(c)..................... 1.91 %
6.40%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000)..... $406,770 $
362,416
Average net assets (000)............ $402,262 $
26,829
Ratios to average net assets(b):
Expenses, including distribution
fees.......................... .84 %
.98%
Expenses, excluding distribution
fees.......................... .84 %
.98%
Net investment income (loss)..... .01 %
(.12)%
Portfolio turnover rate............. 34 %
42%
Average commission rate paid per
share............................ $ .0598 $
.0611
</TABLE>
- ---------------
(a) Commencement of investment operations.
(b) Annualized.
(c) Total return does not consider the effects of sales
loads. Total return is
calculated assuming a purchase of shares on the first
day and a sale on the
last day of each period reported and includes
reinvestment of dividends and
distributions. Total returns for periods of less than a
full year are not
annualized.
(d) Calculated based upon weighted average shares
outstanding during the period.
- ------------------------------------------------------------
- --------------------
-----
See Notes to Financial Statements. 10
<PAGE>
PRUDENTIAL ENNISON
SERIES FUND, INC.
Supplemental Proxy Information PRUDENTIAL
JENNISON GROWTH FUND
- ------------------------------------------------------------
- --------------------
The Annual Meeting of Shareholders of the Prudential
Jennison Series Fund,
Inc., Prudential Jennison Growth Fund (the 'Fund') was held
on Wednesday,
October 30, 1996 at the offices of Prudential Securities
Incorporated, One
Seaport Plaza, New York, New York. The meeting was held for
the following
purposes:
(1) To elect Directors as follows: Edward D. Beach, Delayne
Dedrick Gold, Robert
F. Gunia, Donald D. Lennox, Douglas H. McCorkindale,
Mendel A. Melzer,
Thomas T. Mooney, Stephen P. Munn, Richard A. Redeker,
Robin B. Smith, Louis
A. Weil, III and Clay T. Whitehead.
(2) To approve the proposed elimination of the Fund's
fundamental investment
restriction relating to investment in securities of
unseasoned issuers.
(3) To ratify the selection of Deloitte & Touche LLP as
independent public
accountants for the fiscal year ended September 30,
1997.
The results of the proxy solicitation on the above matters
were as follows:
<TABLE>
<CAPTION>
Director/Matter
Votes for Votes against Abstentions
---------------
- ---------- ------------- -----------
<C> <S>
<C> <C> <C>
(1) Edward D. Beach
15,079,049 -- 520,213
Delayne Dedrick Gold
15,078,729 -- 520,533
Robert F. Gunia
15,106,927 -- 492,335
Donald D. Lennox
15,082,520 -- 516,742
Douglas H. McCorkindale
15,096,923 -- 502,339
Mendel A. Melzer
15,088,878 -- 510,384
Thomas T. Mooney
15,098,245 -- 501,017
Stephen P. Munn
15,108,112 -- 491,150
Richard A. Redeker
15,097,739 -- 501,523
Robin B. Smith
15,090,594 -- 508,668
Louis A. Weil, III
15,086,750 -- 512,512
Clay T. Whitehead
15,095,566 -- 503,696
(2) Elimination of Investment Restrictions
10,639,763 698,869 698,402
(3) Deloitte & Touche LLP
14,829,935 204,443 564,884
</TABLE>
- ------------------------------------------------------------
- --------------------
-----
11
<PAGE>
Prudential Mutual Funds
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 225-1852
http://www.prudential.com
Directors
Edward D. Beach
Delayne Dedrick Gold
Robert F. Gunia
Donald D. Lennox
Douglas H. McCorkindale
Mendel A. Melzer
Thomas T. Mooney
Stephen P. Munn
Richard A. Redeker
Robin B. Smith
Louis A. Weil, III
Clay T. Whitehead
Officers
Richard A. Redeker, President
Susan C. Cote, Vice President
Thomas A. Early, Vice President
Grace C. Torres, Treasurer
Stephen M. Ungerman, Assistant Treasurer
S. Jane Rose, Secretary
Marguerite E.H. Morrison, Assistant Secretary
Manager
Prudential Investments Fund Management LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
Investment Adviser
Jennison Associates Capital Corporation
466 Lexington Avenue
New York, NY 10017
Distributor
Prudential Securities Incorporated
One Seaport Plaza
New York, NY 10292
Custodian
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
Transfer Agent
Prudential Mutual Fund Services LLC
P.O. Box 15005
New Brunswick, NJ 08906
Independent Auditors
Price Waterhouse LLP
1177 Avenue of the Americas
New York, NY 10036
Legal Counsel
Gardner, Carton & Douglas
Quaker Tower
321 North Clark Street
Chicago, IL 60610-4795
The views expressed in this report and information about the
Fund's portfolio
holdings are for the period covered by this report and are
subject to change
thereafter.
The accompanying financial statements as of March 31, 1997
were not audited
and, accordingly, no opinion is expressed on them.
This report is not authorized for distribution to
prospective investors unless
preceded or accompanied by a current prospectus.
<PAGE>
(LOGO)
Prudential Mutual Funds
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 225-1852
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